MRSGI nets P401M

MRSGI is focused on the ‘aspirational C’ market

Retailer Metro Retail Stores Group Inc. (MRSGI) grew its net profit in the first six months by 53.1 percent to P401.12 million on improved operating margins amid a modest growth in sales.

For the second quarter alone, net profit rose by 45.9 percent year-on-year to P305.19 million on the back of net sales which grew by 2.16 percent to P8.52 billion, the retailer said in a regulatory filing on Wednesday.

For the six-month period, MRSGI’s net sales increased by 3.3 percent to P16.44 billion, largely a result of the opening of a new store during the second half of 2016 and additional two new stores during the first half of this year.

Excluding the impact of newly opened stores, same store sales growth was 1 percent in the first semester compared to 5 percent in 2016.

Growth in cost of sales was contained at 1.6 percent year-on-year to P12.9 billion in the first semester. This marked an improvement in gross margin as this was outpaced by the 3.3 percent increase in net sales.

For the six-month period, rental income stood at P149.4 million, an increase of 7.8 percent year-on-year as the opening of three new stores led to an increase in net leasable space. In addition, there was an increase in rental fees due to escalation clauses in existing lease agreements.

Meanwhile, interest and other income declined by 23.4 percent year-on-year to P63.8 million in the first six months.

As of end-June, MRSGI operated a total of 52 stores.